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On November 29, Dalian Commodity Exchange (DCE) released the “Notice on Relevant Matters over Trading of Fiberboard and Blockboard Futures Contracts” and decided that the fiberboard and blockboard futures contracts will be listed for trading since December 6 (Friday), 2013. The listing of the “two boards” will add the number of Chinese futures products to 40 and will fill in the product gap, making domestic agricultural futures products expand to the brand new field of forestry.
The Notice specified that the first contracts to be traded are FB1404, FB1405, FB1406, FB1407, FB1408, FB1409, FB1410, FB1411, BB1404, BB1405, BB1406, BB1407, BB1408, BB1409, BB1410, and BB1411. The listed benchmark price of each contract will be further noticed on the trading day before listing. The trading margin of the fiberboard and blockboard futures contracts is temporarily set as 7% of the contract value during the earlier period of listing, the trading limit of the contracts is 4% of the settlement of the previous trading day, and the trading limit of new contracts on the first day of listing is 8% of the listed benchmark price. The trading commission is 0.01% of traded contract value and the commission for the same position with early opening a position and late closing a position on the same day is 0.005% of traded contract value.
The Notice announced the designated quality inspection institutions and the designated delivery warehouses of the “two boards” futures. Six institutions (China Certification and Inspection Group Inspection Co., Ltd., SGS China, the National Center for Quality Supervision and Testing of Wood and Bamboo Products, the Technique Center of the Linyi Entry-Exit Inspection and Quarantine Bureau, the Changzhou Products Quality Supervision and Inspection Institute, and the Guangzhou Institute for Quality Supervision and Inspection of Wood and Wood Products) are the designated quality inspection institutions for fiberboard and blockboard. The Exchange will release the maximum limit for quality inspection charge, and customers and quality inspection institutions will negotiate and decide the final charge.
The Notice specified the designated delivery warehouses of fiberboard products and blockboard products. With regard to the fiberboard products, the warehouses in Guangdong Province are set as the standard warehouses and, by referring to the characteristics of the spot market price, the premium of warehouses in Zhejiang, Jiangsu, and Tianjin is RMB 5 per piece. CMST Development Co., Ltd. (Xingang Branch and Nancang Branch), Tianjin Total Logistics Co., Ltd, Zhenjiang Huilong Changjiang International Port Co., Ltd., Jiangsu Wujin Port Company Co., Ltd., Zhejiang International Business Group Logistics Co., Ltd., Guangdong Guochu Logistics Co., Ltd., China National Materials Storage and Transportation Corporation Guangzhou Branch, and Guangdong Guangwu Wood Industry Co., Ltd. are the designated delivery warehouses for fiberboard. With regard to the blockboard products, the warehouses in Zhenjiang Province and south of Jiangsu Province are set as the standard warehouses and the premium of warehouses in Tianjin is RMB 10 per piece and that of warehouses in Hebei, Shandong, North Jiangsu, and Guangdong is RMB 20 per piece. CMST Development Co., Ltd. (Xingang Branch, Nancang Branch, and Langfang Branch), Tianjin Total Logistics Co., Ltd., Lichen Logistics Co., Ltd., Zhenjiang Huilong Changjiang Port Co., Ltd., Jiangsu Wujin Port Company Co., Ltd., Zhejiang International Business Group Logistics Co., Ltd., Guangdong Guochu Logistics Co., Ltd., China National Materials Storage and Transportation Corporation Guangzhou Branch, and Guangdong Guangwu Wood Industry Co., Ltd. are the designated delivery warehouses for blockboard.
In terms of the selection of the quality inspection institutions and the delivery warehouses for the “two boards”, relevant person in charge of DCE said that hundreds of institutions in China are qualified to inspect the quality of fiberboard and blockboard and over 30 of them are of the national level. In order to coordinate with the listing of the “two boards” futures and ensure the successful quality inspection for the delivery commodities, DCE has referred to its experience in deciding the quality inspection institutions of existing products and compared the quality, testing capacity, and testing experience of each institution in line with the market-oriented principle. Afterwards, DCE conducted field investigation on institutions with higher capacity and better quality and finally selected 6 institutions. In choosing the designated delivery warehouses, DCE has considered the characteristics of the production and consumption geographical distribution of the “two boards” and taken Beijing and Tianjin, the Yangtze River Delta area, and the Zhujiang River Delta area as the delivery places for the “two boards”. It has also selected the institutions in related areas as the delivery warehouses, so as to effectively distribute the delivery warehouses resources and avoid the unnecessary logistics cost.
Market participant said that China’s futures market has accelerated the pace of its innovative development since the holding of the 18th National Congress of the Communist Party of China. Six commodity futures products (coking coal, thermal coal, bitumen, iron ore, egg, and japonica rice) and one financial futures product (treasury bonds) have been listed in this year, the largest number of listed futures products in a year since the screening and rectification of China’s futures market, and these new products have all presented good performance since their listing. The “two boards” might be the final products listed this year and would draw a successful end to the market’s product innovation of this year.
